Paycom Software, Inc. (PAYC) · Nov 4, 2026 · Earnings
Beat — Non-GAAP EPS $3.37 vs ~$2.81 consensus; FY revenue midpoint raised to $2.216B
Paycom earnings beat Q3 revenue and EPS expectations, while the company lifted 2026 revenue and EBITDA guidance for a second time.
Paycom is in the middle of an automation-led recovery: its cloud HCM platform is using products such as IWant™ and automated decisioning to reignite growth while converting that growth into much higher operating leverage. The prior quarter had already shown momentum and carried 2026 revenue guidance of $2.197–$2.212 billion and adjusted EBITDA guidance of $1.007–$1.022 billion.
The quarter clearly beat the market’s bar. Revenue reached $543.8 million versus published consensus of roughly $535.3 million, while non-GAAP diluted EPS was $3.37 versus about $2.81 expected. That is not just a revenue beat: recurring and other revenue grew 11.3%, and adjusted EBITDA rose 38% year over year to $268.1 million, showing that Paycom is extracting more profit from modest double-digit growth.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Total revenue (Financial Highlights) | $543.8M (+10.2%) | $493.3M | ~$535.3M |
| Non-GAAP diluted EPS (Financial Highlights) | $3.37 | $1.94 | ~$2.81 |
| Adjusted EBITDA (Reconciliation) | $268.1M (+38.0%) | $194.3M | |
| Adjusted EBITDA margin (Reconciliation) | 49.3% | 39.4% |
The more important surprise is the second guidance increase. Paycom lifted its 2026 revenue range to $2.213–$2.218 billion from $2.197–$2.212 billion and raised adjusted EBITDA to $1.069–$1.079 billion from $1.007–$1.022 billion. The revenue revision is modest, but the roughly 2.5-point increase in the midpoint EBITDA margin to 48.5% says the company is seeing better operating leverage than it previously assumed. 〔0〕
The caveat is capital allocation, not operating execution. Paycom generated $536.5 million of free cash flow through nine months and repurchased $1.391 billion of stock, but it also ended the quarter with $750 million of long-term debt and only $193.9 million of cash. The balance-sheet change reflects an aggressive buyback program rather than a deterioration in the operating model, but it makes the stronger earnings story more dependent on continued cash generation.
Bottom line: This is a genuine operating beat with another upward reset to the full-year outlook, strengthening Paycom’s automation-and-margin recovery story. The event matters because profitability is improving faster than revenue, although the heavy buyback program has increased balance-sheet leverage.
Q4 results and 2027 outlook, early February
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